Question: When Frederick was born, his grandparents gave him a gift of $\$2000$, which was invested at an interest rate of $5\%$ per year, compounded yearly.  How much money will Frederick have when he collects the money at the age of $18$? Give your answer to the nearest hundredth of a dollar.
Five percent growth corresponds to multiplication by $1+5\%=1.05$.  So, the amount of money Frederick will have in $18$ years is $2000(1+.05)^{18}=\boxed{\$4813.24}$.